Pepper Money rockets on $2.60 approach as banks extend their rally

• Pepper Money jumped on a $2.60-per-share approach; talks are exclusive, but not locked in
• Identitii surged after the Takeovers Panel ordered a rights issue to be reopened with extra disclosure
• AMP fell sharply even with profit growth, as the market focused on confidence and transition risk
• The big banks rallied on strong profits, dividends and thick capital buffers